VAT Faq's

1. Q: What will the 5% VAT be charged on?

E.g: Below table is indicative room charge for 5 star hotel

Description Room Rate + Service Charge
Room Rate 1,000
10% Municipality Fee 100
10% Service Charge 100
Gross room rate 1,200
Tourism Dirham 20
Sub-Total 1,220
5 % VAT 1100 x 5% = 55
Grand Total 1,275
A: VAT will be applied on Room rate + service charge as demonstrated in the above table.

2. Q: Is VAT charged on customs duties?

A: VAT will be charged on the final amount including custom duties. Import VAT can be recovered as per the VAT regulations.

3. Q: Will VAT be applied on payments received in 2017 for 2018 bookings?

A: Any bookings for supply of goods and services to be delivered in 2018 will be subject to VAT. VAT will also be applicable on long term stays in 2018 (and onwards) whether or not the contract was signed prior to the issue or implementation of the law. Please refer to article (70) of the Cabinet Decision No.

(52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax.

By way of an example, VAT will be applicable in the following scenarios:

a. Reservations made for 2018 before the official VAT announcement.

b. Reservations made for 2018 after VAT announcement.

c. Long term stay guests before VAT announcement continuing their stay in 2018.

4. Q: In cases where some units are owned and leased out by non-licensed persons, how is VAT going to be charged?

A: VAT will be charged in the same manner as a licensed business/person. Any business/person having taxable supplies over AED 375,000 over the last 12 months should register and account for VAT on all supplies after registration, even if the person is not duly licensed to conduct activity.

5. Q: Is VAT applicable to below services?

a. Tourist Visa. The Tourist Visa fee will be subject to a cabinet decision on Government fees. However, any third party services relating to processing and issuance of tourist visas are subject to VAT.
b. Local private transport (Hotel transportation for guests). This follows the Exempt rule, so the customer shall not be charged VAT, except as otherwise set out in article (45) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
c. Complimentary services. If a complimentary service is funded by the Hotel and is provided to the guest without any consideration, then it is not taxable. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
d. No show and cancelled bookings.are taxable so long as funds have been received by the hotel.
e. House Use (Rooms used by hotel staff for free). VAT on house-use depends on the details of the nature of accommodation provided. Please refer to article (53) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
f. Rebate/discount.The price of goods and services may be reduced by the value of the discount and then VAT will be applied to the post discount rate. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
g. Redemption of Loyalty points /Rewards.This is typically taxable but dependent on the nature of the loyalty program, whether the reward points have been purchased or granted for no consideration.
h. Sales Offers for Free night stays (e.g. Pay for 2 nights stay for 3). The price of goods and services may be reduced by the value of the discount. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
i. Reservations from Government entities.Taxable.
j. Barter agreement. Taxable at the market value of the goods or services. Please refer to article (25) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax.
k. Outsourced staff/ Shared services.Taxable.
l. FOC Items (Free of Charge). Similar treatment as rebates, discounts and complimentary. Depends on the nature of the FOC and how it has been granted. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
m. Incentives/Commission to third party (Local and overseas).Taxable.
n. Security Services/ Valet/Contract staff. Taxable.
o. Housekeeping / Engineering/Catering services to the leased outlets inside the hotels. Taxable.

6. Q: Is VAT applicable on advance payments immediately or at the time the service is availed?

A: VAT will be applicable on advance payments immediately. As an exception, VAT on advance payments received in 2017 for 2018 bookings will be payable in 2018. Please refer to article (25&26) of the Federal Decree-Law No. (8) of 2017 on Value Added Tax

7. Q: Is VAT applicable on refundable deposits?

A: If a deposit is completely refundable, it is not subject to VAT. If there is any administration fee included in the refund, the administration fee is taxable.

8. Q: Is VAT applicable on MICE businesses?

A: MICE businesses are subject to VAT, however a refund scheme for foreign businesses is detailed at article (67) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax

9. Q: Implication of VAT on 1St January 2018 for Hotel

On New Year's Eve 31-Dec-2017, hotels will be operating beyond midnight and as such bills will be produced during early hours of 1-Jan-2018. Are these charges subject to VAT?

A: VAT shall be applicable at the earlier of:

a.The time of opening of the business on 1 January 2018.

b.7AM on 1 January 2018.

10. Q: Is VAT applicable on long term leases? In light of residential leases being exempt from VAT, how are hotel leases going to be treated?

A: Stays in hotels are taxable irrespective of length of stay

11. Q: In cases when goods and services are supplied on a daily basis, but invoicing is done on a quarterly basis, when is VAT recorded? At the time of issuing the invoice or monthly?

A: At the time of issuing the invoice. Please refer to article (25&26) of the Federal Decree-Law No (8) of 2017 on Value Added Tax.

12. Q: Is it mandatory to mention the VAT registration number on the invoices/pro-forma/quotation?

A: Tax Registration Number has to be mentioned on invoices for all registrants.

Q: Integration of VAT software with Hotel PMS & Back office

As per the VAT regulations every establishment has to purchase the VAT software approved by the FTA and to be linked with back office (accounting software). As the Hotels are using two systems (E.g Opera(Front office) & Sun system (Back office),In this case which one to be linked (Opera shows full transactions and the back office shows the summary).

A: DTCM will update the industry as soon as further information has been in relation to the software integration.

13. Q: Clarity on payment cycle & method, as well as list of violations.

A: Payment cycle is dependent on Tax periods which are allocated to each entity as per its turnover. Method payment shall be electronic. Administrative penalties are listed in the Cabinet Decision no. 40 of 2017 on www.tax.Government.ae

Tables of Violations and Administrative Penalties
Appendix to the Cabinet Decision No. (40) Of 2017

Table (1): Violations and Administrative Penalties related to the Implementation of the Federal Law
No. (7) of 2017 on Tax Procedures Administrative Penalty (AED) Description of Violation
Description of Violation Administrative Penalty (AED)
1 The failure of the person conducting Business to keep the required records and other information specified in Tax Procedures Law and the Tax Law (10,000) for the first time. (50,000) in case of repetition.
2 The failure of the person conducting Business to submit the data, records and documents related to Tax in Arabic to the Authority when requested. (20,000)
3 The failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law. (20,000)
4 The failure of the Registrant to submit a deregistration application within the timeframe specified in the Tax Law (10,000)
5 The failure of the Registrant to inform the Authority of any circumstance that requires the amendment of the information pertaining to his tax record kept by Authority. (5,000) for the first time.
(15,000) in case of repetition
6 The failure of the person appointed as a Legal Representative for the Taxable Person to inform the Authority of his appointment within the specified timeframe. The penalties will be due from the Legal Representative's own funds. (20,000)
7 The failure of the person appointed as a Legal Representative for the Taxable Person to file a Tax Return within the specified timeframe. The penalties will be due from the Legal Representative's own funds. (1,000) for the first time.
(2,000) in case of repetition within (24) months.
8 The failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law. (1,000) for the first time.
(2,000) in case of repetition within (24) months.
9 The failure of the Taxable Person to settle the Payable Tax stated in the submitted Tax Return or Tax Assessment he was notified of, within the timeframe specified in the Tax Law. The Taxable Person shall be obligated to pay a late payment penalty consisting of:
- (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;
- (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.
- (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).
10 The submittal of an incorrect Tax Return by the Registrant. Two penalties are applied:
1. Fixed penalty of:(3,000) for the first time.(5,000) in case of repetition

2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:

- (50%) if the Registrant does not make a voluntary disclosure or he made the voluntary disclosure after being notified of the tax audit and the Authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first.

- (30%) if the Registrant makes the voluntary disclosure after being notified of the tax audit and before the Authority starts the tax audit.

- (5%) if the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority.
11 The Voluntary Disclosure by the Person/Taxpayer of errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of the Tax Procedures Law. Two penalties are applied:
1. Fixed penalty of: (3,000) for the first time.(5,000) in case of repetition

2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:

- (50%) if the Person/Taxpayer makes a voluntary disclosure after being notified of the tax audit and the Authority starting the tax audit or after being asked for information relating to the tax audit, whichever takes place first.

- (30%) if the Person/Taxpayer makes the voluntary disclosure after being notified of the tax audit but before the start of the tax audit

- (5%) if the Person/Taxpayer makes voluntary disclosure before being notified of the tax audit by the Authority.
12 The failure of the Taxable Person to voluntarily disclose errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of this the Tax Procedures Law before being notified that he will be subject to a Tax Audit Two penalties are applied:
1. Fixed penalty of:(3,000) for the first time.(5,000) in case of repetition
2. (50%) of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer.
13 The failure of the Person conducting Business to facilitate the work of the Tax Auditor in violation of the provisions of Article (21) of the Tax Procedures Law. (20,000)
14 The failure of the Registrant to calculate Tax on behalf of another Person when the registered Taxable Person is obligated to do so under the Tax Law. The Registrant shall be obligated to pay a late payment penalty consisting of:
- (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;

- (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.

- (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).
15 A Person not accounting for any tax that may be due on import of goods as required under the Tax Law. (50%) of unpaid or undeclared tax.
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Tours and Sightseeing
17

Things to do in Kuala Lumpur

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Best Tours and Activities in Kuala Lumpur

An artistic blend of mesmerising islands, sprawling tea plantations, vibrant cities, and exceptional colonial architecture; Malaysia beckons its guests to experience the best of the country attractions and things to do with Rayna tour’s absolute hospitality. The national capital of the country, Kuala Lumpur has so much to see and do that we ensure our Kuala Lumpur tours are
...Read more designed in a way that meets all the excursion needs of our guests alongwith their comfort. Whether you want to stick to the Kuala Lumpur sightseeing or are interested in taking day trips to nearby cities like Putrajaya; we have a perfect itinerary ready for you.

Take a sneak peek into the history of Kuala Lumpur when it was nothing by a small town that suffered immense social and political setbacks as a result of wars and invasions. It is heartening to learn that this developed city that represents the Malaysian growth today was once under a constant threat of floods and disease outbreaks. Our tours will take you on a journey of Kuala Lumpur’s traumatic past along with the inspiring present and allow you to soak in the most famous attractions, the hidden gems and the off beaten paths of the largest city in the country.

Kuala Lumpur tourism is explored best with Rayna tours. With our tours, we introduce you to the soul of the country over its culinary delights, colonial architectures, religious diversity, and its great tropical climate. No Malaysian expedition is considered complete without understanding the city of Kuala Lumpur in its true might and with Rayna, be rest assured to love every minute of it.

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KL Hop-On Hop-Off Bus

Duration: 12 Hours (Approx)

See all of the Malaysian capital’s highlights in the most enjoyable and flexible way on a hop on hop off bus tour. Buy your 24-hour or 48-hour ticket online and get ready for an unforgettable sightseeing experience. .. Read More...

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Kuala Lumpur Airport Pick up

Duration: 1 Hour (Approx)

For a totally unperturbed arrival in Kuala Lumpur, book our exclusive airport pick up service which efficiently gets you from Kuala Lumpur International Airport to your hotel or desired spot anywhere in the city. .. Read More...

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Kuala Lumpur Airport Drop off

Duration: 1 Hour (Approx)

Let us make your transfer from your hotel to Kuala Lumpur International Airport as easy and stress-free as possible! Reserve your airport drop off transfer with Rayna Tours and add a touch of comfort and class to your journey. .. Read More...

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Aquaria KLCC

Duration: 45 Minutes (Approx)

Discover the magical underwater world right here in the middle of Kuala Lumpur! Visit Aquaria KLCC with Rayna Tours and have the most unforgettable encounter with fascinating marine species from all over the world. .. Read More...

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KidZania Kuala Lumpur

Duration: 8 Hours (Approx)

Take your little ones to one of Kuala Lumpur’s coolest spots, KidZania! Blending learning with fun and entertainment, it will enthrall your kids with 60 exciting job roles to choose from.  .. Read More...

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Explore more than 400 million years old limestone caves and visit one of the region’s most sanctified temples with our Half Day Batu Caves and Kuala Lumpur Countryside Tour. .. Read More...

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Kuala Lumpur City Tour

Duration: 3.5 Hours (Approx)

Be enthralled by Kuala Lumpur’s charming old and new sights. Rayna Tours’ comprehensively guided Kuala Lumpur city tour offers you an in-depth look into the prominent city sights, ranging from cultural and historic to most modern attractions. .. Read More...

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Petronas Twin Towers

Duration: 1 Hour (Approx)

Join Rayna Tours for an in-depth look at Petronas Tower, one of Malaysia’s most iconic sights. Walk along its Skybridge which connects the two towers and marvel at the breathtaking city skyline from its 86th floor. .. Read More...

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Legoland Malaysia

Duration: 8 Hours (Approx)

Enter a world of immersive fun, entertainment, and endless creativity with an easy trip to Legoland Theme Park. Rayna Tours arranges Legoland tickets with or without transfers. .. Read More...

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Sunway Lagoon Day Tour

Duration: 8 Hours (Approx)

Five distinct parks in one destination! This is what Sunway Lagoon Tour offers. With Rayna Tours, enjoy a hassle-free entry to Malaysia’s one of best theme parks. .. Read More...

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Full Day Genting Excursion

Duration: 8 Hours (Approx)

Breathtaking mountainous scenery, pristine cool ambience, and an unforgettable cable car ride – all assure you of the most unforgettable experience on your Full Day Genting Excursion. .. Read More...

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See the astonishing attractions that constitute the immaculately laid out city of Putrajaya! Our Half Day Putrajaya Tour takes you to Taman Warisan Pertanian Agricultural Park, Putra Mosque and Perdana Putra, among other places of interest... Read More...

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Fireflies Night cruise with Dinner

Duration: 8 Hours (Approx)

A distinct night adventure awaits you on this mindboggling trip from Kuala Lumpur. Visit the 18th century Fort Altingsburg, explore Kuala Selangor National Park, and finally take an exquisite Fireflies Night Cruise. .. Read More...

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Kuala Lumpur Cultural Night Tour

Duration: 4 Hours (Approx)

Embark on an evening excursion to absorb the lively nightlife of Kuala Lumpur! Rayna Tours’ Cultural Night Tour includes a visit to some of the city’s most energetic spots plus an optional dinner with authentic Malay specialties. .. Read More...

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Kuala Lumpur Rainforest Day Tour

Duration: 4 Hours (Approx)

Join us for an unforgettable retreat into the resplendence of nature! Just 16 kilometers away from Kuala Lumpur, this tour introduces you to one of Malaysia’s most lush and scenic regions. .. Read More...

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Malacca Day Tour from Kuala Lumpur

Duration: 8 Hours (Approx)

Take a refreshing trip outside of Kuala Lumpur to explore the country’s oldest city in the Strait of Malacca. Covering all of Malacca’s major attractions plus lunch and roundtrip transfers, this full day tour is certain to enrich your knowledge of the Malaysian history and culture. .. Read More...

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Travel to Kuala Gandah Elephant Sanctuary for a distinct kind of wildlife experience. This ensures you a memorable excursion regardless of your age group. .. Read More...

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Kuala Lumpur Tours Review
Average of 5.0/5.0 based on 13 reviews.

The tour of the wildlife park was also extremely interesting!

When we were having great sightseeing tours in Kuala Lumpur, our kids were getting bored. So, make the holiday interesting for them, we planned to go on a day tour to Sunway Lagoon day tour. What was thought to be a fun day for them became the most memorable day for the entire family. Our kids were so thrilled to know that this theme park has a water park, amusement park, scream park, Extreme Park and Wildlife Park. While the kids had a great time at the Water Park and amusement park, I personally loved the Extreme Park. The tour of the wildlife park was also extremely interesting.

5.0/5.0

Will definitely take the help of Rayna Tours for booking my tour again!

The Petronas Towers have always attracted me but I never had a chance to see this amazing building during my several visits to Malaysia. Rayna Tours gave me the chance on my last visit. If I have to say one word to describe my experience, I would say incredible! While the architecture and design of the twin towers amazed me, the view from the observation deck was awe-inspiring. Due to time constraints, I could not explore the buildings any more. I surely want to go back to visit the KLCC shopping centre and the other attractions. Will definitely take the help of Rayna Tours for booking my tour again!

5.0/5.0

Thank you Rayna Tours!

Everyone visiting Malaysia should go for this tour to Genting Highlands, home to Malaysia's best theme parks as well as the only casino resort. We really enjoyed the cable car ride which gave us an incredible view of the entire place. We also enjoyed Sky Venture, the skydiving simulator. Gave us an idea as to how the actual thing would be. Exhilarating and exciting! Had a great time at the Genting Highlands! Thank you Rayna!

5.0/5.0

Extremely interesting tour!

I had gone around the city of Kuala Lumpur and want to take a break from the steely buildings and high-rises. This tour package from Rayna Tours caught my attention. The tour was simply interesting. The Batu Caves gave us the opportunity to view and explore the temple cave. But the really interesting tour was that of the Kuala Lumpur countryside. Completely different from the crowded KL city, we enjoyed amazing scenic views during the tour. The tour of the Batik factory was informational and extremely interesting.

5.0/5.0

The tour was managed excellently, and all of us had a great time!

Thank you Rayna Tours for offering this Kuala Lumpur tour package! For someone like me who was visiting Kuala Lumpur for the first time, this was great. I got to see all the prominent places of Kuala Lumpur without any hassle. The tour was managed excellently, and all of us had a great time.

5.0/5.0

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